Public sector wage growth is set to outstrip private salary increases for the first time in three years, putting pressure on governments to curb spending that is keeping inflation higher for longer.
Economists called on state and federal governments to rein in public sector pay rises after the RBA warned last week the continued growth in government spending was making it harder for the central bank to get inflation under control.
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Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS. Connect with Michael on Twitter. Email Michael at michael.read@afr.com
